Mentoassociates.com – Legal Articles

A promoter of an apartment shall make full and true disclosure to the intending buyers of apartments, details regarding the nature of his title to the land on which the flats are constructed, such title duly certified by an Advocate of not less than seven years standing. He shall also make full and true disclosure of all encumbrances on such land, and shall allow inspection on reasonable notice, of the plans and specifications of the buildings, built or to be built on the land. Further such plans and specifications shall have to be approved by the local authority under the law in force.

The promoter is also duty bound to disclose the nature of fittings, fixtures and amenities to be provided; as well as the particulars in the design and the materials to be used in the construction of the building. A promoter shall also specify in writing the date by which the possession of the flats is to be handed over.

The promoter shall also prepare and maintain a list of flats with their numbers and the name and addresses of the parties and the price charged or agreed to be charged. He shall also state in writing the nature of the organization of persons to be constituted and to which title is to be passed, and the terms and conditions governing such organization of persons.

The Karnataka Land Reforms Act 1961 provides for formation of co-operative farms. A minimum of 10 persons, holding a minimum of 50 acres of land in a village may apply to registrar of Co-operative Society to register themselves as a co-operative farm. After making necessary enquires the registrar may register the Co-operative farm and issue certificate of registration.

After registration, the possession of lands held by the individual members stands transferred to the Co-operative Farm. If a new member is admitted as a member of a Co-operative farm after registration, the possession of his land also shall stand transferred to the co-operative farm. A co-operative farm shall form necessary byelaws and a copy of the proposed byelaws shall accompany the application for registration. Only the Registrar can effect an amendment to the byelaws. Every member of a Co-operative Farm shall contribute funds, personal labor and agricultural implements, stocks etc.

After the formation of a Co-operative Farm, it shall be the liability of a farm to pay land revenues and other dues of the land, which is possessed by it. A Co-operative Farm is entitled to various concessions such as reduced land revenues, reduction or exemption of agricultural income- tax, free technical advice, grant of subsidies, financial aids, loans with or without interest etc.

Each apartment, together with its undivided interest in the common areas and facilities appurtenant to such apartment, is a heritable and transferable immovable property. An apartment owner may transfer his apartment and the percentage of the undivided interest in the common areas and facilities appurtenant to such apartments by way of sale, mortgage, gift, exchange etc.

Each apartment owner shall be entitled to the exclusive ownership and possession of his apartment. He shall execute a declaration that he submits his apartment to the provisions of the Karnataka Apartment ownership Act, 1972 and a Deed of Apartment.

Each apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the declaration. Such percentage is computed by taking as a basis the value of the apartment in relation to the value of the property. The percentage of the undivided interest of each apartment owner in the common areas and facilities shall have a permanent character and shall not be altered without the consent of all the apartment owners expressed in an amended declaration.

The common areas and facilities shall remain undivided and no apartment owner or any other person shall bring any action for partition or division of any part thereof. Each apartment owner may use the common areas and facilities in accordance with the purpose for which they were intended without hindering or encroaching upon the lawful rights of the other apartment owners.

In Karnataka there are many restrictions on the holding or transfer of agricultural land by persons or families. No person who, or a family which, has an annual income of not less than two lakhs rupees from sources other than agricultural lands shall be entitled to acquire any agricultural land, whether as landowner, landlord, tenant or as a mortgagee with possession or otherwise. For the purpose of calculating the annual income, the average annual income of five consecutive preceding years is taken into account. Any acquisition in violation of this rule is deemed to be null and void. Persons or families holding land in violation of this rule are supposed to file a declaration to the jurisdictional tahsildar, who shall forward the same to the Deputy Commissioner, who shall notify such lands as transferred to the state government.

Further, no person, other than a person cultivating land personally shall be entitled to hold agricultural land. However, educational, religious or charitable institution or society or trust of a public nature, capable of holding property, formed for an educational, religious or charitable purpose, can hold property when the income from the land is appropriated solely for the institution or the society or the trust concerned.

Similarly agricultural land cannot be sold, gifted, exchanged, leased or mortgaged (with possession) to a person who is not either an agriculturist or an agricultural laborer. However the jurisdictional Assistant Commissioner may grant permission to acquire land, to persons who bonafide intend to take up agriculture, provided the transferee takes up agriculture within one year from the date of acquisition.

The Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain lands) Act, 1978 prohibits transfer of lands granted by the Government to persons belonging to the Schedule Castes and Schedule tribes in the state. The Object of the Act is to give effect to Directive principles of State Policy contained in Article 46 of the Constitution.

As per section 4 of the said Act, any transfer of granted lands made before or after the commencement of the said act, in contravention of the terms of the said grant shall be null and void and the transferee gets no right, title or interest in such land. However a transfer of granted land with the previous permission of the Government is perfectly legal. The Deputy Commissioner is the competent authority to give such permission. The word ‘transfer’ means and includes sale, gift, exchange, mortgage etc.

Transfer of granted land in breach of conditions of grant is void. Government is entitled to resume such land and restore it to grantee or his legal heirs. A transfer, even to an SC/ST person in violation of the conditions of grant is null and void.

The registrars are prohibited from registering the transfer of granted lands and the office of registrars are provided with a list of granted lands coming within their jurisdiction. The Act even provides for imprisonment, which may extend to 6 months or fine, which may extend to two thousand rupees or both for contravention of the provisions of the above act.

The Karnataka Rent Act 1999 and Rules 2001 require registration of middlemen, brokers or agents. The Middleman or broker shall register his name with the Rent Controller of his area by filing an application in form 8 and paying a registration fee of Rs 200/- only. The Controller after scrutiny of the application issues a certificate of registration in Form No.9, which is valid for a period of 5 years, and the agent shall renew his registration after the said period. The renewal fee is Rs 200/-. The said persons shall submit to the Rent Controller of the area a statement in the prescribed form showing their names, place of business and area of activity.

The middlemen or agent or broker shall within 10 days from the last day of each quarter of every calendar year, file return giving details of every transaction handled by him during the quarter, and the brokerage or commission received by him in each case.

Every middleman or Estate Agent who fails to register his name with the Rent Controller on conviction shall be punishable with fine up to two thousand rupees or with simple imprisonment for a term up to one month or both and also shall be liable to fine of rupees two hundred for each day of continuing default till he complies with law. Further every agent who fails to submit a statement as mentioned above shall on conviction be punishable with fine up to one thousand rupees or with simple imprisonment for a term up to one month.